Homes: worth less and taxed more

Housing prices fell an astounding 27% in July, making it clear that the recession will not be ending soon.  Lower sales means lower prices– and lower tax revenues for municipalities, who in turn are raising tax rates to compensate.

A random survey of three properties in my county shows an average valuation drop of 15% from last year, down to roughly 2004 levels.  Yet (if proposed budgets are approved) our property taxes will actually increase by 3.7% to 4.3% as city and county governments try to make up for lost revenue elsewhere.